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disaster
recovery (BC/DR) plans. More importantly, you’ll need to know how your supplier views the
importance of BC/DR plans, how they manage their own plans, as well as how frequently those plans
are updated and tested by the supplier.

Download this detailed supply
chain management checklist, which can help you ask the right questions to assess and audit key
supplier BC/DR plans and associated programs. This makes it easier to determine if your key
suppliers are committed to BC/DR activities, as well as documenting and regularly testing those
plans.

Evaluating supplier BC/DR plans

If a prospective or existing supplier is likely to become a key resource to your organization
(e.g., suppliers of raw materials or shipping companies), be sure that the vendor has the resources
and operational capabilities to stay in business even with the potential for a disruption. In both
cases, examine each vendor’s BC/DR program and associated plans. The absence of such programs may
not be deal-breakers, but if any of your suppliers are critical to your organization’s supply
chain, their BC/DR plans could be the difference between the success and failure of your
business.

Free download

You can perform the assessment yourself or use your internal audit department. The questions are
designed primarily to elicit a yes or no response to minimize the amount of time needed to conduct
the audit/assessment help pinpoint areas where you’ll need to dig deeper.

If at all possible, review the vendor’s BC/DR plans instead of simply taking the vendor’s word.
Remember that a vendor’s refusal to let you examine the entire plan may be tied to a company
security policy and should not necessarily be cause for concern. In that case, ask the vendor to
provide excerpted sections from the plan, such as the table of contents and sample pages from the
document.

Determine if the supplier has faced any legal issues, such as customer complaints, regulatory
violations or litigation for poor performance.

Examine where the supplier’s offices, including warehouses, manufacturing facilities, and
specialized facilities such as where fuel storage tanks are located.

Compare supplier pricing and discounting options with other suppliers.

Can you negotiate prices with the supplier?

Ask the supplier’s vendors for their opinions about the firm.

Summary

Use the supply
chain management checklist to protect your organization from vendors who may not be able to
maintain normal operations in the aftermath of a disruptive incident. Remember that any disruption
to your supply chain can affect your organization and possibly other firms that are also in your
supply chain.

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